JERA Co., Inc. (“JERA”) has signed a Memorandum of Understanding (“MOU”) with Saudi Arabia’s Public Investment Fund (“PIF”). The MoU will drive cooperation between the two parties, to explore opportunities for the development of green hydrogen projects and derivatives, JERA said in a statement.
In October 2021, JERA established JERA Middle East & Africa Management Co. Ltd. in Dubai, UAE, with a view of developing combined cycle power plant, large-scale renewable energy projects and green fuel production projects. JERA has already existing gas-fired power and desalination projects in the GCC region and remain actively prospecting, with potential partners in the Middle East, to expand its development of decarbonization projects.
Green hydrogen is being increasingly looked upon as an alternative for fossil fuels.
PIF’s diversification strategy
PIF (Public Investment Fund) is playing a crucial role in driving Saudi Arabia’s economic transformation, aligning with its long-term diversification strategy. The focus is on actively developing projects to support Saudi Arabia’s ambitious net zero target by 2060. PIF’s investments span various sectors, including Green Hydrogen, Renewable Energy, Energy Efficiency, and Waste Management.
To enhance their efforts, PIF and JERA have entered into a Memorandum of Understanding (MOU) that aims to unlock valuable synergies. The collaboration will capitalize on the unique resources and capabilities of both parties to jointly develop projects related to green hydrogen derivatives, particularly ammonia, with the primary intention of exporting from Saudi Arabia.
This strategic partnership is expected to create expanded business opportunities for both PIF and JERA. JERA is actively exploring the potential of the Middle East & Africa regions, known for their abundant renewable energy resources, as an ideal production hub for green hydrogen and ammonia.
By doing so, they aim to realize their “JERA Zero CO2 Emissions 2050” goal. To achieve this ambitious objective, JERA will maintain its collaborations with prominent companies both in Japan and internationally. Together, they will establish and enhance supply chains for hydrogen and ammonia, playing a pivotal role in global decarbonization efforts and providing sustainable energy solutions.